diff --git a/x/wasm/ioutils/ioutil.go b/x/wasm/ioutils/ioutil.go
index a34a43e9ea..b671e5ad65 100644
--- a/x/wasm/ioutils/ioutil.go
+++ b/x/wasm/ioutils/ioutil.go
@@ -5,13 +5,15 @@ import (
 	"compress/gzip"
 	"io"
 
+	errorsmod "cosmossdk.io/errors"
+
 	"github.com/CosmWasm/wasmd/x/wasm/types"
 )
 
 // Uncompress expects a valid gzip source to unpack or fails. See IsGzip
 func Uncompress(gzipSrc []byte, limit uint64) ([]byte, error) {
 	if uint64(len(gzipSrc)) > limit {
-		return nil, types.ErrLimit
+		return nil, types.ErrLimit.Wrapf("max %d bytes", limit)
 	}
 	zr, err := gzip.NewReader(bytes.NewReader(gzipSrc))
 	if err != nil {
@@ -19,7 +21,11 @@ func Uncompress(gzipSrc []byte, limit uint64) ([]byte, error) {
 	}
 	zr.Multistream(false)
 	defer zr.Close()
-	return io.ReadAll(LimitReader(zr, int64(limit)))
+	bz, err := io.ReadAll(LimitReader(zr, int64(limit)))
+	if types.ErrLimit.Is(err) {
+		return nil, errorsmod.Wrapf(err, "max %d bytes", limit)
+	}
+	return bz, err
 }
 
 // LimitReader returns a Reader that reads from r
diff --git a/x/wasm/ioutils/ioutil_test.go b/x/wasm/ioutils/ioutil_test.go
index 3399abf293..668c94aed6 100644
--- a/x/wasm/ioutils/ioutil_test.go
+++ b/x/wasm/ioutils/ioutil_test.go
@@ -4,6 +4,7 @@ import (
 	"bytes"
 	"compress/gzip"
 	"errors"
+	"github.com/cometbft/cometbft/libs/rand"
 	"io"
 	"os"
 	"testing"
@@ -52,8 +53,8 @@ func TestUncompress(t *testing.T) {
 			src:      asGzip(bytes.Repeat([]byte{0x1}, maxSize+1)),
 			expError: types.ErrLimit,
 		},
-		"handle other big gzip output": {
-			src:      asGzip(bytes.Repeat([]byte{0x1}, 2*maxSize)),
+		"handle big gzip archive": {
+			src:      asGzip(rand.Bytes(2 * maxSize)),
 			expError: types.ErrLimit,
 		},
 	}
diff --git a/x/wasm/keeper/keeper.go b/x/wasm/keeper/keeper.go
index 895eb8f773..b928c1a4ec 100644
--- a/x/wasm/keeper/keeper.go
+++ b/x/wasm/keeper/keeper.go
@@ -172,7 +172,7 @@ func (k Keeper) create(ctx sdk.Context, creator sdk.AccAddress, wasmCode []byte,
 		ctx.GasMeter().ConsumeGas(k.gasRegister.UncompressCosts(len(wasmCode)), "Uncompress gzip bytecode")
 		wasmCode, err = ioutils.Uncompress(wasmCode, uint64(types.MaxWasmSize))
 		if err != nil {
-			return 0, checksum, errorsmod.Wrap(types.ErrCreateFailed, err.Error())
+			return 0, checksum, types.ErrCreateFailed.Wrap(errorsmod.Wrap(err, "uncompress wasm archive").Error())
 		}
 	}
 
@@ -214,7 +214,7 @@ func (k Keeper) importCode(ctx sdk.Context, codeID uint64, codeInfo types.CodeIn
 		var err error
 		wasmCode, err = ioutils.Uncompress(wasmCode, uint64(types.MaxWasmSize))
 		if err != nil {
-			return errorsmod.Wrap(types.ErrCreateFailed, err.Error())
+			return types.ErrCreateFailed.Wrap(errorsmod.Wrap(err, "uncompress wasm archive").Error())
 		}
 	}
 	newCodeHash, err := k.wasmVM.Create(wasmCode)